Cheshire builders’ goods business snapped up in £54m deal by Swedish group
Swedish supply chain company, Bufab, has acquired Nantwich-based TIMCO (TI Midwood & Co) for £54m, on a cash-free/debt-free basis.
A performance-based additional payment might be made in 2023-2024, depending on operational profit.
TIMCO is a supplier of essential construction products.
Last October, the company reported a 14% increase in turnover to £49.7m for 2020, and predicted a £60m turnover for 2021.
Pre-tax profits for the year rose from £3.4m in 2019 to £5.4m in 2020.
The rapid growth, which occurred in the run up to the company’s 50 years in business, led to an expansion of TIMCO’s facilities and for the company to embark on a new recruitment drive.
Simon Midwood will continue to run the business with the senior team at TIMCO, following the takeover.
TIMCO has been family owned since it was founded in 1972 by Tim Midwood, father of managing director Simon.
The business, under Simon’s leadership, has expanded and is now a one-stop-shop for more than 4,500 independent merchants across the UK and Ireland.
It supplies essential products such as screws, fasteners and fixings, nails, adhesives and chemicals, powertool accessories, hand tools, building hardware and site protection, security and ironmongery and PPE.
Johan Sandberg, director global business development and group director UK, said: “I am honoured and very happy to announce this acquisition, which is the largest acquisition so far for Bufab.
“It is a significant and attractive add-on to our existing businesses in the UK. TIMCO is a very strong brand within C-parts (screws, fasteners and fixings, nails etc) to the construction industry and will significantly improve Bufab’s customer offering in this market segment.”
He added: “This strategic expansion in the UK market further underlines our commitment to grow and widen our offering in new market segments and we are confident that TIMCO will continue to grow and to keep its strong entrepreneurial DNA and excellent customer service also as a member of Bufab group.”
Simon Midwood said: “This deal will enable us to accelerate our growth and continue expanding the range of products and services we offer, while still maintaining our first class customer service. We look forward to working with our new colleagues at Bufab in driving the company forward.”
TIMCO was advised by Clearwater International (corporate finance), Addleshaw Goddard (legals) and EY (financial due diligence), and Bufab was advised by PwC (financial due diligence) and Walker Morris (legals).
